Correlation Between Terawulf and BIG Blockchain
Can any of the company-specific risk be diversified away by investing in both Terawulf and BIG Blockchain at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Terawulf and BIG Blockchain into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Terawulf and BIG Blockchain Intelligence, you can compare the effects of market volatilities on Terawulf and BIG Blockchain and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Terawulf with a short position of BIG Blockchain. Check out your portfolio center. Please also check ongoing floating volatility patterns of Terawulf and BIG Blockchain.
Diversification Opportunities for Terawulf and BIG Blockchain
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Terawulf and BIG is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Terawulf and BIG Blockchain Intelligence in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BIG Blockchain Intel and Terawulf is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Terawulf are associated (or correlated) with BIG Blockchain. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BIG Blockchain Intel has no effect on the direction of Terawulf i.e., Terawulf and BIG Blockchain go up and down completely randomly.
Pair Corralation between Terawulf and BIG Blockchain
Given the investment horizon of 90 days Terawulf is expected to generate 1.15 times more return on investment than BIG Blockchain. However, Terawulf is 1.15 times more volatile than BIG Blockchain Intelligence. It trades about 0.09 of its potential returns per unit of risk. BIG Blockchain Intelligence is currently generating about 0.03 per unit of risk. If you would invest 121.00 in Terawulf on August 30, 2024 and sell it today you would earn a total of 608.00 from holding Terawulf or generate 502.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Terawulf vs. BIG Blockchain Intelligence
Performance |
| Timeline |
| Terawulf |
| BIG Blockchain Intel |
Terawulf and BIG Blockchain Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Terawulf and BIG Blockchain
The main advantage of trading using opposite Terawulf and BIG Blockchain positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Terawulf position performs unexpectedly, BIG Blockchain can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in BIG Blockchain will offset losses from the drop in BIG Blockchain's long position.| Terawulf vs. Iris Energy | Terawulf vs. Stronghold Digital Mining | Terawulf vs. Argo Blockchain PLC | Terawulf vs. Bitfarms |
| BIG Blockchain vs. DeFi Technologies | BIG Blockchain vs. Argo Blockchain PLC | BIG Blockchain vs. DigiMax Global | BIG Blockchain vs. Galaxy Digital Holdings |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |